Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Spanish GDP for the first quarter is predicted to increase by 0.7% quarterly and 2.4% annualized. Forex traders can compare this to the Spanish GDP for the fourth quarter, which rose by 0.7% quarterly and 2.1% annualized.
The Canadian CPI for May is predicted to rise by 0.3% monthly and by 2.6% annualized. Forex traders can compare this to the Canadian CPI for April, which accelerated by 0.5% monthly and 2.7% annualized. The Canadian Core CPI for May is predicted to expand by 0.2% monthly and 1.6% annualized. Forex traders can compare this to the Canadian Core CPI for January, which increased by 0.2% monthly and 1.6% annualized. The Canadian CPI-Median for May is predicted to expand by 2.6% annualized, and the Canadian CPI-Trimmed by 2.8% annualized. Forex traders can compare this to the Canadian CPI-Median for April, which rose by 2.6% annualized, and to the Canadian CPI-Trimmed by 2.9% annualized.
The forecast for the EUR/CAD turned bullish after this currency pair stabilized inside its horizontal support area. Short-term volatility could increase after the Tenkan-sen and the Kijun-sen flatlined following a bearish crossover. The ascending Ichimoku Kinko Hyo Cloud provides ongoing upside momentum, but it began to narrow with the Senkou Span A drifting lower and the Senkou Span B moving higher. Traders should also monitor the CCI after its breakout from extreme oversold territory, preceded by a minor positive divergence. This technical indicator has plenty of upside potential to lead price action higher, and a breakout above zero could trigger the next leg higher. Can bulls strengthen their control over the EDUR/CAD and push price action into its horizontal resistance area, which sparked the previous sell-off in this currency pair and represents its 2024 high? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/CAD remain inside the or breakout above the 1.4610 to 1.4665 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4650
- Take Profit Zone: 1.4805 – 1.4860
- Stop Loss Level: 1.4580
Should price action for the EUR/CAD break down below 1.4610, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4580
- Take Profit Zone: 1.4485 – 1.4530
- Stop Loss Level: 1.4610
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